At the end of June, the Canadian government officially granted itself new powers to liquidate confiscated Russian assets. Since then, the results have not been forthcoming, although assets in the tens of millions have been frozen in Canada. I am working very, very hard to implement this law, the foreign minister assured last Monday.
But in Ottawa, Minister Mélanie Joly’s wishes are met with legal reality. According to our information, officials are still looking for a way to properly enforce this policy from a legal standpoint. This assessment could take a few more months.
How to resell Russian assets while avoiding legal challenges? Is there a risk that Canada will be made to pay compensation to the same people or organizations it wants to sanction? We have no room for error. We must act conscientiously, says a government source.
The idea is nice on paper, but the implementation is another matter. It must be understood that this is an unusual measure. No G7 country has done this before, explains Frédéric Mégret, a professor at McGill University’s law school.
Launch of the widget. Skip the widget?
end of the widget. Back to the top of the widget?
Professor Mégret explains that Canada is at risk of violating international law. Freezing assets is one thing and liquidating them without a criminal conviction is another, although Canadian law provides that power. Sanctions have a suspensive effect on a protective right. Liquidation is a much more drastic measure, he argues.
Canada could face legal challenges.
“The state could be obliged to compensate people dispossessed in this way. That’s the problem. »
— A quote from Frédéric Mégret, Professor at McGill University Law School
Run in the wing
According to our information, the Trudeau administration is desperate for a first asset that could be seized and liquidated in order to make an impression.
Ottawa was particularly interested in a Russian-registered Antonov aircraft that was grounded at Toronto’s Pearson Airport due to Canada’s transport sanctions.
A Russian-registered Antonov AN-124 has been grounded at Toronto Pearson Airport since Monday, February 28, 2022. Canada’s airspace is closed to Russian-registered aircraft.
Photo: The Canadian Press/Frank Gunn
Unfortunately, the company that owns the device is not subject to Canada’s economic sanctions regime. It is therefore impossible to confiscate and resell it.
The trawl broken off.
Meanwhile, the opposition, initially sympathetic to the idea, grew impatient.
This is also window dressing. We claim to be the best in the world to support Ukraine and we do nothing, Conservative MP Pierre Paul-Hus thunders.
Bloc Québécois MP Christine Normandin believes the Trudeau government has put the cart before the horse again.
In the eyes of the new democrat Alexandre Boulerice, it is ultimately the Ukrainians who pay the price.
“It’s extremely disappointing: we puff up our chests, we make announcements, and then we don’t do anything to actually carry them out. »
— A quote from Alexandre Boulerice, Vice President of the New Democratic Party
Government officials say efforts are being made to implement the liquidation process. In particular, consultations have taken place with the provinces to move things forward.
Within the Trudeau government, this idea is seen as innovative and capable of inspiring similar initiatives abroad. Our allies are watching us, this is an opportunity to start an international movement, adds the same government source.
Will Canada be a role model to follow or to avoid? Sooner or later the allied countries will have the answer.
With the collaboration of Marie Chabot-Johnson